SAN JOSE, CALIF. Hewlett-Packard reports rise in earnings; will cut jobs

Hirings in some areas will offset job cuts elsewhere.
SAN JOSE, Calif. (AP) -- A year after merging with Compaq Computer Corp., Hewlett-Packard Co. reported stronger-than-expected results but announced it was cutting more jobs to keep costs in line with the weak demand for high-tech equipment.
The computer giant, which is in the process of cutting 17,900 jobs related to the merger, said it will cut 3,500 more during the second half of the year. At the same time, HP said it would add 4,000 jobs in other areas of the company.
The cuts were announced as HP beat Wall Street's earnings and revenues expectations.
For the three months ended April 30, HP earned $659 million, or 22 cents per share, compared with profits of $252 million, or 13 cents per share, in the same period last year -- before the completion of its $19 billion merger with Compaq.
Second-quarter sales were $18 billion, down slightly from last year's combined $18.2 billion but up slightly from the $17.9 billion reported in the first quarter.
Excluding special items, the Palo Alto, Calif.-based company earned $877 million, or 29 cents per share. Analysts were expecting a profit of 27 cents per share on sales of $17.7 billion, according to a survey by Thomson First Call.
Revenue growth
HP rivals Dell Computer Corp. and International Business Machines Corp. recently reported stronger year-over-year revenue growth.
But HP noted that the year-ago figures are not an accurate barometer of revenue growth since as separate companies, HP and Compaq had competing products.
Fiorina said competitors showed declines in quarter-to-quarter revenue while HP saw growth.
The company said its server system business for large companies grew closer to profitability, while its personal systems posted profits. HP's printer and imaging businesses reported strong results, as did its consulting arm.